Your darling is now able to narrate a story or an incident in clear sentences. For instance, she can tell about her day at school, talk about the story you read to her, etc. Her language is getting very impressive and the sentences are well formed.
What you need to know
Read books to her. Once done, ask her to narrate the story. As she progresses, give her ample encouragement.
Much of her language and literacy skills' progress depends on the environment and experiences, from school, play and home.